Key Points
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Sandisk continues to surge as its NAND flash memory chips gain traction.
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Advanced Micro Devices’ GPUs are gaining momentum and position the company for a $1 trillion valuation.
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Caterpillar’s power generators have become hot commodities among hyperscalers.
- 10 stocks we like better than Sandisk ›
Palantir attracted a lot of attention last year after surging from under $10 per share in 2023 to over $200 per share last year. Conversations about Palantir becoming a trillion-dollar company became more common, but since then, the stock has shed more than 20% of its value year-to-date.
It’s a sign that some investors believe there are better choices in the stock market, and that also holds true for people who want to buy the next $1 trillion company. The three stocks on this list have compelling growth prospects, positive year-to-date stock gains, and appear to have a better shot than Palantir at reaching the $1 trillion milestone.
1. Sandisk
Sandisk (NASDAQ: SNDK) benefits from the same tailwinds as Micron, which recently reached a $1 trillion valuation, but it is growing faster. Sandisk’s NAND flash memory chips are critical for AI infrastructure, and they have fueled more than 4,500% in gains in its stock price over the past year.
No one would have viewed Sandisk as a contender for a $1 trillion valuation a year ago, but it now has a $300 billion market cap. The company posted 97% sequential growth in its fiscal 2026 third quarter. The fact that Micron smashed prior guidance suggests that Sandisk can do the same when it reports its fiscal 2026 Q4 earnings in August.
All this top-line growth also comes with rising profitability. Sandisk delivered 350% sequential net income growth and wrapped up its fiscal 2026 Q3 with a net profit margin just above 60%. Sandisk’s price-to-earnings (P/E) ratio has risen to 72, but substantial net income growth suggests its valuation will look much more attractive to investors who buy at these levels within a year.
2. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) is another strong contender for a $1 trillion valuation by 2030. Its $850 billion market cap and year-to-date gains in its stock price of more than 100% suggest it can achieve this milestone sooner than 2030.
AMD’s P/E ratio has been elevated due to the recent run-up, reaching 174. It’s not as much of a bargain as Sandisk with that ratio in mind, but fundamental growth for the AI chipmaker remains attractive.
Revenue increased by 38% year over year in Q1 2026, while operating income was up by 83% year over year. The demand for AI chips will continue to surge as tech giants ramp up their AI spending. Most of that money is going to Nvidia, but AMD has clearly established itself as a viable alternative.
AMD CEO Dr. Lisa Su told investors that the company “expect[s] server growth to accelerate meaningfully” due to inferencing and agentic AI. This technology is still in its early innings, and AMD’s prime positioning puts it well on track to reach a $1 trillion market cap.
3. Caterpillar
Caterpillar (NYSE: CAT) has rallied by almost 70% year to date as the AI build-out increases energy demand. Not only did Caterpillar deliver 22% year-over-year revenue growth in Q1 2026, but it also reached a record backlog of $62.7 billion. That figure is up 79% year over year and provides clear revenue visibility for future quarters. That includes an $11.5 billion increase from Q4 2025 to Q1, a 22.5% sequential boost.
The Power & Energy segment is the defining part of recent momentum. That part of the business was up by 32% year over year, with power generation sales up by 48% year over year. Caterpillar also reported more moderate growth rates for its Construction Industries and Resource Industries revenue, with those figures up by 7% and 6% year over year, respectively.
Caterpillar still trades a little below a $500 billion market cap, but strong momentum and continued energy demand amid intense AI spending can support a rally to $1 trillion by 2030. The company also makes good use of stock buybacks, including $5 billion in share repurchases in the first quarter. Caterpillar also paid out $0.7 billion of dividends to shareholders.
AI tailwinds continue to power all three stocks on this list as they move toward $1 trillion valuations. If hyperscalers keep throwing more money at AI, each of these stocks should keep rallying.
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Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Caterpillar, Micron Technology, and Palantir Technologies. The Motley Fool has a disclosure policy.
